Millennials Are More Engaged, But Not Saving Enough

While the high percentage of Millennials who report having a
financial plan is encouraging, the 68% who say they are not investing enough
for retirement is highly problematic, Nationwide says. The survey reports 36%
of Millennial investors only guess at how much they need to fund their
retirement, and nearly one in four do not know if they even have a 401(k) plan.

“While it’s great that Millennial investors now have a
financial plan, they’re still coming up short when it comes to savings,” says
Mike Spangler, president of Nationwide’s mutual funds business. “To help close
the gap, we recommend that Millennials work closely with a professional
financial adviser.”

The survey finds 56% of Millennial investors think they
would be more financially successful with professional financial advice;
however, only 39% use a financial adviser. A majority (58%) conduct their own
financial research and make their own investment decisions, but only half are
confident they know how much to save. Of those without a financial plan, 28%
feel that creating a financial plan is overwhelming and 40% say they haven’t
gotten around to it yet.

Millennials are more likely to consult family (50%) and
websites (49%) than a financial adviser for meeting their financial planning
needs. In contrast, retirees are more likely to turn to a financial adviser
(62%), traditional media (37%), and to follow their gut feeling (36%).

“The good news is that Millennials acknowledge the value of
a professional and want to save and invest more,” Spangler adds. “The financial
industry has a real opportunity to help Millennials understand how to balance
the demands of paying for today with investing for the future.”